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Types of funds
What is a balanced advantage fund?
A balanced advantage fund, or dynamic asset allocation fund, moves money between equity and debt depending on market conditions, often buying more equity when valuations are low.
How it works
Each fund uses its own model, frequently based on valuations such as price-to-earnings ratios. The aim is a smoother ride than a pure equity fund, with some participation in market rises.
Example
A balanced advantage fund might run 40% net equity when markets look expensive and 80% after a sharp fall.
Keep in mind
- Two funds in this category can behave very differently; read how each one decides its mix.
- They still carry equity risk.
Questions people ask
Is a balanced advantage fund low risk?
Lower than pure equity, but it still holds shares and can fall.
Who uses these funds?
Investors who want equity exposure with less swing, or a first step into equity.
Related terms
General information for education, not investment advice or a recommendation of any scheme. Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Past performance may or may not be sustained in future. Last reviewed 25 October 2026.